The Central GST Department has issued a notice to the Sree Padmanabhaswamy Temple, demanding payment of overdue taxes amounting to Rs 1.57 crore. The notice highlights the Modi government’s stance that laws are equally applicable to all, emphasizing the importance of true secularism, where all religions are subject to the same laws.
The GST Department claims that the temple has not paid GST on various revenue streams, including rent from properties, income from selling clothing to devotees, earnings from selling art and sculptures, and even income from renting elephants for rituals. Following confidential reports indicating unpaid taxes, an inspection was conducted at the temple’s office, confirming that the temple had not paid GST on certain services and goods.
Although the temple management argued that they were entitled to certain tax exemptions, they claimed their taxable income amounted to only Rs 16 lakh over the period in question, with Rs 3 lakh already paid in GST. Despite this response, the GST department issued another notice last month, insisting on payment of the full amount.
The Rs 1.57 crore in dues reportedly includes seven years of back taxes, dating back to 2017. The notice warns that failure to pay the dues could result in penalties up to 100 percent and an additional 18 percent interest on the outstanding amount. Out of the arrears, Rs 77 lakh each is allocated to the central and state governments, with an additional Rs 3 lakh due as flood cess to the state.
Temple Executive Officer V Mahesh informed Asianet News that they are currently consulting financial experts on the matter. The temple management maintains that they should not be required to pay the entire amount and plans to provide further clarification to the GST department.
Meanwhile, the Ministry of Finance recently reported an 8.9 percent increase in GST revenue for October, with collections reaching Rs 1.87 lakh crore, up from Rs 1.72 lakh crore in October 2023. This rise in tax revenue suggests improved economic activity and more efficient tax collection.
GST revenue for the fiscal year up to October stands at Rs 12.74 lakh crore, showing a 9.4 percent increase compared to the previous period’s Rs 11.64 lakh crore. In the fiscal year 2023-24, total GST revenue was Rs 20.18 lakh crore, marking an 11.7 percent growth over the previous fiscal year. The ministry anticipates a record GST collection this year, attributed to increased domestic production and reduced imports, reflecting India’s strengthening economy.
